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ECB Calls Spain's Bluff... Or Does It? And Did Europe Just Check To The Fed?

Tyler Durden's picture





 

While most of the early action today was driven by a baseless rumor that the ECB would announce some magical recapitalization plan that would put everything back into its normal (by this we mean somehow sustainable) place, the alleged time when Draghi would make such an announcement came and went... and nothing. Instead, the ECB, using the FT as its mouthpiece, came out late in the day, however not with news that Europhiles wanted to hear. As a reminder, as part of the proposed Bankia nationalization scheme, Spain would inject Spanish debt into the insolvent entity, thereby allowing it to pledge the debt for ECB repo cash. Or so the thinking went. This was, in effect, Spain's bluff. The ECB has just called it.

From the FT:

A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said.

 

News of the rejection came as Spain faces elevated borrowing costs in the bond markets, tries to persuade investors it can contain problems in a banking sector weighed down by €180bn of bad property loans and, on Tuesday, saw its central bank governor stand down early.

Instead, it seems that the ECB is a fan of the old fashioned type of capital raise: one involving equity, and cash, and none of this newfangled repo monetary ponziness. Of course, the only bank that did try a capital raise by way of a rights offering in 2012 was Italian UniCredit which plunged by nearly half in the days following the announcement as a market test would clearly indicate it was woefully undercapitalized and its equity may well be worthless. This, however, does not seem to bother the ECB:

The ECB told Madrid that a proper capital injection was needed for Bankia and its plans were in danger of breaching an EU ban on “monetary financing,” or central bank funding of governments, according to two European officials

ECB's calling of the Spanish bluff also explains the earlier news of Ordonez' premature evacuation from the Bank of Spain, which we noted:

News of the ECB’s hardline response emerged as the Bank of Spain announced that Miguel Angel Fernández Ordóñez, its governor, would step down at the end of next week, a month earlier than planned. Mr Fernández Ordóñez – known by his initials Mafo, who was appointed by Spain’s previous socialist government – has been subject to increasing attacks from politicians over his failure to prevent the country’s banking crisis.

In summary:

“This is like a game of poker now,” one government adviser said, “and I don’t think Spain is bluffing”.

Well, it is. Because its cards, as explained yesterday, are all merely collateral backed by zombie banks which carry their "assets" at idiotic valuations.

So yes - in the great game of monetary poker, the ECB just called Spain's bluff. Or maybe not. Because paradoxically this may all be simply a means to crash the market, as we have been cautioning since last week, when Citi, correctly, said that Crossover would cross over (pun intended) 1000 bps, before the central banks would get involved.

In other words: yes, it is a game of cards, but one which may well have Spain and the ECB on the same side of the table, and now both have checked to Ben Bernanke, who has 3 weeks to decide if the cost of bailing out Europe, and thus US banks, is worth the printing of another $1 trillion.

We can't wait to find out.

 


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Tue, 05/29/2012 - 17:03 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Should I panic or something?

Tue, 05/29/2012 - 17:05 | Link to Comment SheepDog-One
SheepDog-One's picture

 I guess we have to wait until morning futures tell us what to think.

Tue, 05/29/2012 - 17:21 | Link to Comment gatorengineer
gatorengineer's picture

futures only come in one color Dog, and thats green.....  The plunge protection team is nothing if not dilligent.

Tue, 05/29/2012 - 17:43 | Link to Comment Rainman
Rainman's picture

Brian Sack has 30 days of voodoo mayhem left in him for sure.

http://www.zerohedge.com/news/brian-sack-out

Tue, 05/29/2012 - 18:17 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

I hate to say this but it looks like the Mayans really knew their shit about 5,000 year calendars.

Tue, 05/29/2012 - 18:54 | Link to Comment barliman
barliman's picture

 

... and they knew even more about 13,000 year galactic cycles.

Chew on that one for a while ...

barliman

Tue, 05/29/2012 - 19:15 | Link to Comment Not Too Important
Not Too Important's picture

Weren't the Olmecs the smart ones?

And is that chew, or choom? If you're talking about chewing on a Mayan, I'll need my bath salts first.

Tue, 05/29/2012 - 22:39 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

The Galactic Ferderation of light has some interesting insight http://www.youtube.com/watch?v=B7qFlyiOSq8

Wed, 05/30/2012 - 00:37 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Haaaah! Never thought I'd see that posted by anyone here.

Trip out...duuuuuude.... but good stuff. I'd highly recommend all barnacled old farts here to check it out!!! Awesome stuff Dr. H.

Meanwhile, anyone who is a Motorcyclist/Enthusiast, do dive in below and tell me why?

ori

the-great-machinery-death-cult-wake-up

Wed, 05/30/2012 - 03:45 | Link to Comment Michael
Michael's picture

It's not going to be pretty, but I think we'll get through it together.

Wed, 05/30/2012 - 05:40 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Indeed Michael. 

How do you feel about Romney's slightly pre-mature announcement?

And Jeb Bush carefully considerign a potential VP spot.

Another Bush VP will be like a bad dream, recurring.

ori

Wed, 05/30/2012 - 05:39 | Link to Comment css1971
css1971's picture

Google: Countersteering and "steering dampers" in the context of motorcycles.

Wed, 05/30/2012 - 05:41 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Thanks css, that was particulary in the Indian context, where the bikes are very much a 1960's design with pretty skin, fenders, seats, forward rake (all style no substance) et. al.

ori

Wed, 05/30/2012 - 02:26 | Link to Comment Bruce Flea
Bruce Flea's picture

Shroom.

Tue, 05/29/2012 - 20:31 | Link to Comment Harbanger
Harbanger's picture

Hey big ching asshoe, you should really know better than to say "the mayans really knew".  So I won't junk you now, but don't be surprised when I ream you and your comments in the future.

Tue, 05/29/2012 - 23:42 | Link to Comment Davalicious
Davalicious's picture

Don't hurt him, big guy!

Tue, 05/29/2012 - 23:57 | Link to Comment Harbanger
Harbanger's picture

R U kiddin?  I love The Big Ching-aso.  He can take it and dole it back.  Sharpens his skills, he's no dummy.

Tue, 05/29/2012 - 20:24 | Link to Comment philipat
philipat's picture

Why do we continue to have to bail out every insolvent Bank?

Tue, 05/29/2012 - 22:32 | Link to Comment Cosimo de Medici
Cosimo de Medici's picture

Tradition.

Tue, 05/29/2012 - 23:44 | Link to Comment Real Money Wins
Real Money Wins's picture

Because it's easy, you just turn on the press's and print another trillion in counterfiet fiat. It doesn't hurt the 1% just the 99% who have to pay for it and they can't be too pissed off about it cause they don't do anything about it.

 

So it's Uncle Benny to the rescue with another helicopter of QE cash!!!!

 

"and it's fried rice you plick"

Wed, 05/30/2012 - 02:52 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

WHAT??

Haven't you heard that THE MEDIA MESSIAH has saved MILLIONS of jobs, and spent LESS money than all previous Presidents?

MSNBC/NBC told me, so it just HAS to be the truth, right?

 

Just think of how many MORE jobs the Messiah Obama could save by Printing only a trillion dollars more!

Wed, 05/30/2012 - 05:27 | Link to Comment HungrySeagull
HungrySeagull's picture

That too shall pass.

But... but... but... 4 more years? ugh.

Wed, 05/30/2012 - 01:21 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

You'd think the people would wake up to this, but no.

http://www.bbc.co.uk/news/world-us-canada-18255192

Obamney just won the required delegates in RP's home state.

Oh, and more importantly, Kim Kardashinin has new boots.

Goodnight Irene!

Wed, 05/30/2012 - 06:18 | Link to Comment tonyw
tonyw's picture

"I guess we have to wait until morning futures tell us what to think."

If you'd prefer not to wait I'll tell you what to think and do.

Or maybe you could ask those in the second twin tower how it worked out for them, ... no you can't coz they're still waiting for the call.

Think for yourself but don't think you're infallible.

Think if the future of all human civilisation depended on me, what would I do, how would I be?
Did I do all that I could?

 

Tue, 05/29/2012 - 18:11 | Link to Comment Joshua_D
Joshua_D's picture

Don't Panic.

Tue, 05/29/2012 - 18:37 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Central planners have this situation under control.

Muhahahahahahahahahahahahah ... Muhahahahahahahahahahahahaha!

Tue, 05/29/2012 - 19:30 | Link to Comment Everyman
Everyman's picture

I think you should "or something".

Tue, 05/29/2012 - 19:36 | Link to Comment Buck Johnson
Buck Johnson's picture

He's correct, they are trying to tell the US they have no viable plan and no money.  The only people that could "help" is the US bailing out parts of Europe.  Essentially it's another bluff but this time it's with the ECB and Spain against the US.  Is the pain of an imploded EU and currency better than a bailout of another Trillion.  I bet the bankers will get them to bail out the ECB to that amount.  Because they are tied up with the EU countries to the tune of trillions.

Wed, 05/30/2012 - 02:57 | Link to Comment FlyoverCountryS...
FlyoverCountrySchmuck's picture

Frankly, it's a damn good bluff, since it's an Election Year, and the Euros can clearly see that Obama has no hesitation whatsoever spending trillions in taxpayer money to save his 2012 arse.

Tue, 05/29/2012 - 20:43 | Link to Comment Ineverslice
Ineverslice's picture

You gonna bet one chip or two chips Ray?

Tue, 05/29/2012 - 21:10 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture
I'm serious Submitted by Turd Ferguson on May 29, 2012 - 8:43pm. MODERATOR
Hat Tip!


4

THERE ARE FORUMS AND, FRANKLY, OTHER SITES FOR THIS STUFF. TAKE IT THERE.

ANY MORE OF THIS USELESS DRIVEL ABOUT 9/11/01 AND I'M GOING TO BEGIN DELETING THINGS.

 

Turd flake is in a DREAM WORLD! HAHAHAHA! Gettin' funnier by the post over there!

Tue, 05/29/2012 - 22:39 | Link to Comment ElvisDog
ElvisDog's picture

My instant reaction to the latest ECB pronouncement: zzzzzzzz. More blah-blah-blah, threatening tough talk, blah-blah-blah. Just fucking do something definitive already instead of talking us all to death.

Wed, 05/30/2012 - 02:30 | Link to Comment Terra-Firma
Terra-Firma's picture

Don't panic, change is possible.

How did a $774-million hole in the city’s operating budget become a $90-million surplus?

Toronto is expected to finish the year with $90-million to spare. Just a year ago, Mayor Rob Ford’s administration was issuing dire warnings about the need to cut costs in order to plug a $774-million funding shortfall in the city’s 2012 budget.

http://www.theglobeandmail.com/news/national/toronto/how-does-a-774-mill...

Tue, 05/29/2012 - 17:04 | Link to Comment SheepDog-One
SheepDog-One's picture

Even if Ben prints '$1 trillion', everyone knows it solves nothing and lasts maybe a few weeks....so then what?

Tue, 05/29/2012 - 17:06 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

"Everyone" except the 1/2 of the world population riding the choomwagon...

Tue, 05/29/2012 - 18:26 | Link to Comment bjfish
bjfish's picture

I resent that.  There is nothing wrong with the choomwagon ... plenty of bright, energetic, thinking ppl on that train,  Shiiit, I think I was the conductor once.

That 1/2 the population sleep walks thru life in an unthinking stupor is not in dispute.  But pick another reason for why - 'cuz ur's don't fly.

 

Tue, 05/29/2012 - 22:33 | Link to Comment Cosimo de Medici
Cosimo de Medici's picture

One half of the population sleep walks thru life in an unthinking stupor, and the other half thinks it doesn't.

Wed, 05/30/2012 - 06:22 | Link to Comment tonyw
tonyw's picture
Some people make things happen, some watch things happen, while others wonder what has happened
Tue, 05/29/2012 - 22:00 | Link to Comment potlatch
potlatch's picture

choomwagon?

I would *dream* for a world where, at any given time, half of the population was be-choomed.

We could then switch shifts.

 

 

 

Wed, 05/30/2012 - 00:46 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

That fucker is still stoned.

Tue, 05/29/2012 - 17:06 | Link to Comment EscapeKey
EscapeKey's picture

Then, next month we print $1.1tn thereby solving the problem once and for all.

Tue, 05/29/2012 - 17:08 | Link to Comment SheepDog-One
SheepDog-One's picture

So what we're banking on here is 1 QE, then another? Dare I ask.....'what then?'

Tue, 05/29/2012 - 17:09 | Link to Comment EscapeKey
EscapeKey's picture

Why do you ask questions you already answered yourself?

Tue, 05/29/2012 - 17:11 | Link to Comment SheepDog-One
SheepDog-One's picture

Just wonderin. So the magic formula is '2 more QE's'... ok got it.

Tue, 05/29/2012 - 17:13 | Link to Comment EscapeKey
EscapeKey's picture

Some get paid fortunes for code such as this:

 

while(1)
{
QE();
}

Tue, 05/29/2012 - 17:15 | Link to Comment Captain Benny
Captain Benny's picture

Please - Nobody tell Bernanke that the number one always evaluates to true.  We'll keep it our little scientific secret.

Tue, 05/29/2012 - 17:35 | Link to Comment xela2200
xela2200's picture

while(1=1)
{
QE();
}

Tue, 05/29/2012 - 17:38 | Link to Comment EscapeKey
EscapeKey's picture

You can't assign 1 to an immediate left value!

Tue, 05/29/2012 - 18:35 | Link to Comment razorthin
razorthin's picture

dim one int

one = 1

while(one=1)
{
QE();

Tue, 05/29/2012 - 19:20 | Link to Comment Dead Canary
Dead Canary's picture

X=''

10 * loop

   CALL QE(X)

   PRINT X

   IF bernank.pulls.head.out.of.ass = true THEN GOTO 20

GOTO 10

20 * exit

STOP

Tue, 05/29/2012 - 20:06 | Link to Comment SilverTree
SilverTree's picture

Dude, ...

Wed, 05/30/2012 - 05:56 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

hey, coal_miner's_cadaver!

do me:  "pouring from the empty into the void"

must be endless, but without the goTo

any chance?

Wed, 05/30/2012 - 06:10 | Link to Comment Poetic injustice
Poetic injustice's picture

GOTO went out of style in 1980ies.

Tue, 05/29/2012 - 21:35 | Link to Comment mt paul
mt paul's picture

one....does not equal won

Wed, 05/30/2012 - 02:53 | Link to Comment Bruce Flea
Bruce Flea's picture

razorthin, it won't compile.

 

'\end_of_program' - ending bracket '}' expected

Tue, 05/29/2012 - 20:56 | Link to Comment philipat
philipat's picture

"while(1=1)
{
 QE();
}"

 

QED?

Tue, 05/29/2012 - 17:10 | Link to Comment rockraider3
rockraider3's picture

A couple of asprin and pull the pillows over your head.  That's typically what I do when I get a hangover.

Wed, 05/30/2012 - 05:30 | Link to Comment HungrySeagull
HungrySeagull's picture

Those are minor annoyances. Easily handled by hydration. IV is best.

Tue, 05/29/2012 - 19:29 | Link to Comment stocktivity
stocktivity's picture

Then in a few weeks he prints another billion...It's all Bullshit!

Wed, 05/30/2012 - 00:49 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Billion?!!

That's so 2011.

Tue, 05/29/2012 - 21:12 | Link to Comment Vegamma
Vegamma's picture

What do you mean it solves nothing? It lets bank execs pocket $millions more and preserves their pensions and parachutes at our expense. Nes pas?

Tue, 05/29/2012 - 17:04 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

How does one say DefCon 2 in espanol?

Tue, 05/29/2012 - 17:29 | Link to Comment El Oregonian
El Oregonian's picture

DefCon Dos... There you go.

Tue, 05/29/2012 - 18:01 | Link to Comment Agent P
Agent P's picture

I don't always panic, but when I do, I prefer Dos DefCon....stay worried my friends.

Tue, 05/29/2012 - 19:55 | Link to Comment midgetrannyporn
midgetrannyporn's picture

dos def con carne

Tue, 05/29/2012 - 17:05 | Link to Comment EscapeKey
EscapeKey's picture

These Keynesians are doing a hell of a job.

Once bailed out they really taught those institutions a lesson - namely, that if you engage in risky behaviour, the taxpayer will pay you supersized bonuses!

Tue, 05/29/2012 - 17:49 | Link to Comment narnia
narnia's picture

They are doing a hell of a job financing massive government spending.

Tue, 05/29/2012 - 18:07 | Link to Comment EscapeKey
EscapeKey's picture

Yes, what an amazing coincidence.

Tue, 05/29/2012 - 17:06 | Link to Comment falak pema
falak pema's picture

How many bluffs is the ECB going to call, the Eurozone has 17 active members and 10 tits ...no offense meant to the female members of european zone. 

Tue, 05/29/2012 - 17:11 | Link to Comment EscapeKey
EscapeKey's picture

I like central bankers. Especially if they have big tits.

Tue, 05/29/2012 - 19:51 | Link to Comment unrulian
unrulian's picture

most of them do

Tue, 05/29/2012 - 22:34 | Link to Comment bigkahuna
bigkahuna's picture

yuk.

Wed, 05/30/2012 - 05:31 | Link to Comment HungrySeagull
HungrySeagull's picture

And even worse the big tits weigh em down. Give me a nice plump B or C anyday.

Wed, 05/30/2012 - 06:40 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

i would like to see your avatar's tits, E_K!

i have found her h.0.t. since day 

Wed, 05/30/2012 - 17:09 | Link to Comment EscapeKey
EscapeKey's picture

Anna Chapman, my friend. Anna Chapman :)

Tue, 05/29/2012 - 17:09 | Link to Comment Dr. No
Dr. No's picture

ECB better watch itself.  Telling a sovereign what it can and cant do is a easy way to get itself into trouble.

Tue, 05/29/2012 - 21:57 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Dr. No

you have just discovered the secret...unlike with Ben Bernacke there is no one who can make the phone call to Draghi and say "print dammit'.

The Euro is a currency of NO SINGLE NATION. Thus it is immune to the abuse the dollar is subjected to constantly.

The Euro is not like the dollar.

Wed, 05/30/2012 - 06:35 | Link to Comment Lebensphilosoph
Lebensphilosoph's picture

You're presuming that to pull the strings one needs a bunch of cronies from one nation sitting in a room together, when a bunch of cronies from no nation sitting in a room together does just as well.

Tue, 05/29/2012 - 17:09 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

Meanwhile, gold takes a bath.....again.....and again......and

Tue, 05/29/2012 - 17:25 | Link to Comment youngman
youngman's picture

I can´t understand why either...there is something afoot....this is not right by a long shot...it stinks to high heaven...the game is rigged....and tons of metal are being shifted somewhere...

Tue, 05/29/2012 - 17:39 | Link to Comment EscapeKey
EscapeKey's picture

The interesting thing about today however, is that on previous occasions where the price has tumbled quickly (suspiciously quickly, and this is a suspiciously common occourance) towards the close - but today it rebounced. 1,557 -> 1,548, but it immediately retook 1,557. Looks like someone's little plan didn't work out as expected.

Fuck those colluding arseholes right up the...

Tue, 05/29/2012 - 18:41 | Link to Comment balanced
balanced's picture

Whatever man! God bless them for forcing down the price of metals. If not for those glorious central bankers, I wouldn't have been able to afford half the gold I have now. I just hope gold goes down vs the dollar once the Euro collapses. It will be short lived, but you can bet I will be stacking.

Tue, 05/29/2012 - 22:46 | Link to Comment bigkahuna
bigkahuna's picture

I agree. I have been working to utilize this event to bring more people into the PM world. You are right. When the event occurs I and everyone with me are moving in. A source I have (old silver trader) believes that silver could drop all the way to 16 - I am not so positive, my threshold is 20 and then we start buying in quantity. I believe if it touches 16, it will be very difficult to find any sellers. 16 would be a fake price for a disjointed market. It will not stay down long before it takes off though. It might only stay down a couple of days max, but more likely a couple of hours max.

Wed, 05/30/2012 - 05:32 | Link to Comment HungrySeagull
HungrySeagull's picture

It's going to be wicked fast.

The rope you are holding is gonna scalp your palms and burn you down to the bone when it does take off... and cut you in half on the way up.

I have seen charts on silver rise and fall 6 to 10 dollars in a few minutes sometimes. neck snapping fast buying and selling... whew.

Weeks of months of the doldrums before you round the cape horn in winter with the grey beards and all.

Wed, 05/30/2012 - 08:25 | Link to Comment HungrySeagull
HungrySeagull's picture

It's not a big deal.

Prices go down, stackers stack.

What else is new? Paper bad, metal good.

Tue, 05/29/2012 - 17:54 | Link to Comment narnia
narnia's picture

It's called deflation. Thats what happens when credit markets contract via bank runs and margin calls.

Tue, 05/29/2012 - 19:36 | Link to Comment post turtle saver
post turtle saver's picture

Yep, nobody has any money so ya take what you can get.

Tue, 05/29/2012 - 18:12 | Link to Comment JohnG
JohnG's picture

Go read Jesse...11K contracts in 10 minutes.

Tue, 05/29/2012 - 20:49 | Link to Comment WmMcK
WmMcK's picture

Still can get almost 56 oz of silver for 1 oz of gold.
Measuring against USD may not be the best long term strategy.

Wed, 05/30/2012 - 05:35 | Link to Comment HungrySeagull
HungrySeagull's picture

Actually for a day or two last year you only needed roughly 47 to gold.

Sell 50 silver, buy one gold... keep the other 50 you built up.

Start adding to your next gold buy.

Sometimes I am tempted to simply buy two or three gold coins and say fuck it to the mountain of silver.... however a birdie told me a story of 14 silver to one gold... if that happens again, conversion is gonna be SMOKING!

Tue, 05/29/2012 - 17:09 | Link to Comment Olympia
Olympia's picture

How is it possible that the European Union allows the weak states to enter the international money market and borrow the money they need without help – based on their own potentials? How is it possible that the “chain” of interests of euro can let its weak “links” exposed to outside pressuresHow is it possible for a “herd” with common interests to let each “ship” defend itself against the wolves, without help, and its general security threatened? How is it possible for Greece, which represents a minor 3% of the Eurozone’s economy, to be allowed to threaten the other 97% of that economy, due to the latter’s weakness?

The European Union should be the one borrowing from the national banking system – thus dealing with profiteers itself based on its overall potential – not its weak “links” alone. The latter should be under the EU’s protection and constant monitoring. They should borrow from it at a subsequent time and if they became victims of profiteering, the problem should be kept in the bosom of the euro. Domestic profiteering should bring profits to Europe’s influentials, therefore bring profits in the euro area, and not threaten it.

From the Wall Street Crash of 1929 to the Global Financial Crisis of 2007

 

www.eamb-ydrohoos.blogspot.com/2010/02/ten-plagues-of-pharaoh.html

 

Authored by Panagiotis Traianou

Tue, 05/29/2012 - 17:41 | Link to Comment knukles
knukles's picture

None of this woulda happened had we one world gubamint like the UN Development Bank for Undernourished African Potentates and Assorted Investment Bankers.

Tue, 05/29/2012 - 19:14 | Link to Comment hairball48
hairball48's picture
  • ROFLMAO!!!!!!!!!!!!!!
Wed, 05/30/2012 - 03:42 | Link to Comment Bag Of Meat
Bag Of Meat's picture

AAAAARGGHH I WANA CLEAN DAT DIRT!

Tue, 05/29/2012 - 17:11 | Link to Comment catacl1sm
catacl1sm's picture

Only $1 Trillion? pfft. Small potatoes, they need to think big.

 

/sarc

Tue, 05/29/2012 - 17:15 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

$1 Trillion will just be the denomination on the face of the notes.  They'll print thousands of 'em.  Make sure to getcha some...

Tue, 05/29/2012 - 17:19 | Link to Comment canardo
canardo's picture

Be careful what you wish for ...

Wed, 05/30/2012 - 05:36 | Link to Comment HungrySeagull
HungrySeagull's picture

Old Europe does not think big.

New Europe has been stressing about debt issues for so long...

Maybe we absorb Europe into our United States and let it be that.

Tue, 05/29/2012 - 17:12 | Link to Comment AllAboutTheBenjamins
AllAboutTheBenjamins's picture

Print baby print baby 1 2 3 4

Print baby print baby 1 2 3

Print baby print baby 1 2

Print baby print baby 1

 

 

Tue, 05/29/2012 - 19:45 | Link to Comment EclecticParrot
EclecticParrot's picture

As simple as 1 -2 -3 :  those lacking the ability to write are forced to print.

Tue, 05/29/2012 - 17:12 | Link to Comment Conman
Conman's picture

I think the game is to jsut baffle eveyone with as much BS as you can that you give up and jsut go full retardo into the stock markets. Seems to be working here in the US.

Tue, 05/29/2012 - 17:13 | Link to Comment Dick Darlington
Dick Darlington's picture

With all this begging from each and every insolvent european country whether it's for europonzibonds or direct monetary financing, i keep seeing the constant flash in every story i read: "socialist govt".

Tue, 05/29/2012 - 18:17 | Link to Comment earleflorida
earleflorida's picture

Ref: "The Road to Serfdom" by Friedrich Hayek - note the parallels of Italy's Monti, the French Hollande`aise solialist sause de`jour and Brussels' conjoining 'Van Rompuy'! Oh,... and let us not forget the stalwart Merkel of Germany - soon to be disposed ?

Hayek's book speaks of the rise of totalitarianism for the very obscure evolving reasons of socialism prescribed today regarding the EU/ USA?  "Hayek thought government planning was dangerous [1930-1940's? Hitler & Mussolini et.el.]. He did not attempt to assess the merits of particular government funded social welfare regimes, many of which he believed were 'appropriate and beneficial', including subsidy for the aged and unemployment insurance. Rather, he attempted to show that there was a reciprocal relationship between growth of taxpayer-funded social programs and the diminution of personal liberty."  

This quote is strikingly parallel to the USA and EU today?  JMO

Tue, 05/29/2012 - 17:13 | Link to Comment BandGap
BandGap's picture

This time the printing will be more obvious and the continued sinning more apparent.

What does the Fed say when they have to explain to the American public that they will be bailing out a Spanish bank? This cannot end well.

Tue, 05/29/2012 - 17:19 | Link to Comment Bastiat009
Bastiat009's picture

The Fed will say, like it did every other time, that without its prescient intervention the world would have ended and people will go back to their everyday business. Don't forget that Americans believe that, out of 300,000,000 people, GW Bush and BH Obama are the best to lead them.

Tue, 05/29/2012 - 17:32 | Link to Comment knukles
knukles's picture

Well, justifiably so, for between em, they created or saved 678,933,411 1/2 jobs.

Tue, 05/29/2012 - 17:32 | Link to Comment BandGap
BandGap's picture

That was old last time it was trotted out. In addition, they are running out of smoke and mirrors. 

Tue, 05/29/2012 - 21:21 | Link to Comment Bananamerican
Bananamerican's picture

"Don't forget that Americans believe that, out of 300,000,000 people, GW Bush and BH Obama are the best to lead them."

 

Oh Sa-NAP!!

Wed, 05/30/2012 - 05:37 | Link to Comment HungrySeagull
HungrySeagull's picture

Sheeit...

I recall some bosses that were damn good. And for every good boss there was a dozen bosses who should not be allowed to tell people what to do.

Tue, 05/29/2012 - 17:14 | Link to Comment tahoebumsmith
tahoebumsmith's picture

It doesn't matter how many times they throw this hot potato, everytime they do it just keeps getting hotter and hotter. No worries folks, it won't be long before these Zombie Bankers start eating each others faces...

Tue, 05/29/2012 - 17:16 | Link to Comment catacl1sm
catacl1sm's picture

Ouch. Too son, I think.

Tue, 05/29/2012 - 21:22 | Link to Comment Bananamerican
Bananamerican's picture

yeah, the Bankers still have their clothes on...

Wed, 05/30/2012 - 03:49 | Link to Comment Flying Tiger Comics
Flying Tiger Comics's picture

Eating each other's faces. Or indeed, faeces.

Tue, 05/29/2012 - 17:16 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Aaand....futures go from green to red. 

Tue, 05/29/2012 - 17:19 | Link to Comment Conman
Conman's picture

Only to be ramped up overnight as it always is. Oh they games they play.

Tue, 05/29/2012 - 17:16 | Link to Comment AcidRastaHead
AcidRastaHead's picture

You make it seem like newfangled repo monetary ponziness is a bad thing.  Does ZH have any PhDs on staff to help us understand what happens when debt surpasses assets?

Tue, 05/29/2012 - 17:22 | Link to Comment sudzee
sudzee's picture

Assets are so 20th century.

Wed, 05/30/2012 - 00:43 | Link to Comment Uchtdorf
Uchtdorf's picture

Right. We gots iStuff and don't need no assetz.

Tue, 05/29/2012 - 17:18 | Link to Comment BankruptBanker
BankruptBanker's picture

Limit  QEn
 n??

Tue, 05/29/2012 - 17:23 | Link to Comment barliman
barliman's picture

 

QEEND      ..............     http://www.zerohedge.com/news/what-do-fx-traders-know-stock-momos-dont#comment-2461380

Coming soon to a global economy near you.

barliman

 

Tue, 05/29/2012 - 17:18 | Link to Comment barliman
barliman's picture

 

Always the optimitist ...

"... and now both have checked to Ben Bernanke, who has 3 weeks to decide if the cost of bailing out Europe, and thus US banks, is worth the printing of another $1 trillion."

Ben will check back to the other players.  He's not playing to win THIS hand. 

He is playing to win the tournament - which will be much easier with the small fry (EU/euro backed players) out of the game, Germany buying its way back in with the new DM, China's chances crippled by the collapse of the EU exports, the Asian markets crapping in their pants, and the global political classes begging,

"Help us, Obi Ben Bernanke. YOU are our only hope."

His play at that point will be well north of $ 1 trillion USD.

barliman

Tue, 05/29/2012 - 17:19 | Link to Comment hugovanderbubble
hugovanderbubble's picture

ALERT IN BANCO POPULAR_PASTOR

Tue, 05/29/2012 - 17:27 | Link to Comment Eurogroup
Eurogroup's picture

Santander is the one to watch very closely. It can trigger some change that will blow the shit out of Herman the Unelected.

Tue, 05/29/2012 - 17:20 | Link to Comment GoldmanSux
GoldmanSux's picture

Three two's beats a pair of two's

Tue, 05/29/2012 - 17:33 | Link to Comment knukles
knukles's picture

Hah!

I got five zeros!

Wed, 05/30/2012 - 00:45 | Link to Comment Uchtdorf
Uchtdorf's picture

You must play with the Central Bank deck of cards. None of mine have 5 two's.

Tue, 05/29/2012 - 17:21 | Link to Comment youngman
youngman's picture

This is becoming disgusting now..it used to be exciting...humorous...not now.....its a poker game with a bunch of cheaters...and each one has their own rigged deck of cards...and these are the "people" or institutions we are supposed to believe....and support...and they "work" for us...lol...its over....but now its who can steal the most the fastest...and they are...and the money comes from US....the little guy..and we can´t do anything about it...think about it...how do yu "save" a bank when they are not even telling you the truth...?????  and why would you want to.....as a politician would you risk your name..your reputation on a Bank that is bullshitting you at every turn.....not me...just amazing watching this unfold...the lies..the theft...the politicians..economists...talking heads...the bankers....

Wed, 05/30/2012 - 05:39 | Link to Comment HungrySeagull
HungrySeagull's picture

The last time I did poker, got a straight flush and sunk the hundreds back into the table.

Poor to riches back to normal poor in a hour.

Tue, 05/29/2012 - 17:22 | Link to Comment Blammo
Blammo's picture

"Ordonez' premature evacuation"............

How old am I to be laughing at this, 12  ? ? 

Tue, 05/29/2012 - 17:39 | Link to Comment shovelhead
shovelhead's picture

In the common vernacular 'premature evacuation' is known as 'shitting the bed'.

Tue, 05/29/2012 - 17:26 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Check to Bernake?  I think you mean pass the check to Bernanke.  Will this be lubeless? inquiring taxpayers want to know.

Tue, 05/29/2012 - 17:27 | Link to Comment JackT
JackT's picture

Spain should probably start looking for some asteroids to mine.

Wed, 05/30/2012 - 00:46 | Link to Comment Uchtdorf
Uchtdorf's picture

After they build hi-speed rail lines connecting all major cities with zero budget overruns, 'cause that'll really rev up the economy -- being shovel-ready and all.

Wed, 05/30/2012 - 05:41 | Link to Comment HungrySeagull
HungrySeagull's picture

Railroads are faster than Aircraft these days.

Europe knows how to build and run em.

We have shit amtrack that has rusted in one overused corridor for decades.

What we can do is harness several cities into corridors at a time and boost the speed from crap 125 to 260 or so.

It will be a real alternative to driving, air travel.

What is truly awesome is when a 200 mph train wrecks, it is not the number of dead; but the actual surviving living.

Tue, 05/29/2012 - 17:27 | Link to Comment hugovanderbubble
hugovanderbubble's picture

REAL ESTATE PRICES; STILL IN THE MOON¡'¡¡¡¡SPAIN DOESNT RECOGNISE REAL ESTATE PRICES HAS TO PLUNGE ANOTHER 30-50%

Tue, 05/29/2012 - 17:29 | Link to Comment Bastiat009
Bastiat009's picture

Oops bad news from Europe, that must mean Obama is a great president, Bernanke a great Fed chairman, the US$ will rally and gold will be sold.

Tue, 05/29/2012 - 17:30 | Link to Comment jal
jal's picture

[quote]...and the money comes from US....the little guy...[/quote]

No ... its not coming from you.

YOU have been broke and spending more than you have for 30 years.

Look at the whole picture ...

Any money that you might have is due to a ponzi that you benefited from.

Tue, 05/29/2012 - 18:02 | Link to Comment youngman
youngman's picture

Not the USA..us as in we.....we will be paying the bankers higher interest rates...or have inflation take our wealth away....or total colapse....but even then the bankers win..they have private jets to take them to a secure local...with most of their goodies already stashed there...Me I live in Colombia....

Tue, 05/29/2012 - 17:41 | Link to Comment shovelhead
shovelhead's picture

"How is it possible for Greece, which represents a minor 3% of the Eurozone’s economy, to be allowed to threaten the other 97% of that economy, due to the latter’s weakness?"

Because the dopes in the ECB lent way too much money already to your crooked politicians and their cooked books?

Proving once again that fools and their money will be parted.

You could always take one of those nice spanking new German submarines and hold Hamburg hostage.

Gotta think outside the box on this one.

Tue, 05/29/2012 - 17:31 | Link to Comment Mr.Kowalski
Mr.Kowalski's picture

"6. Bernanke's EU Rescue: I look for one of the big two EU problem kids.. Spain or Italy.. to get into some very real trouble this year. As of this writing, Italy looks like the weaker of the two, but Spain has some very real issues and an ongoing Depression to begin with. I think the ECB and the EFSF will have to be given a quick assist from The Bernank as the situation looks as though it will get out of hand. Bernanke will purchase the bonds of an EU sovereign this year directly or through a 3rd party such as the EFSF. Republicans will use this to crucify both Obama and Bernanke"

 

http://themeanoldinvestor.blogspot.com/2011/12/predictions-for-2012-flames-of-war.html

Tue, 05/29/2012 - 17:36 | Link to Comment BandGap
BandGap's picture

I wholeheartedly agree. The game is up. But there will be a "flight to safety" - the biggest turd in the bowl is the US, after all.  So if the Benanke doesn't start the prinitng presses it might actually look good for the US.....for a while.....

Tue, 05/29/2012 - 17:43 | Link to Comment EscapeKey
EscapeKey's picture

Alternatively, the EFSF will need to beefed up yet again... and no doubt Spain will be asked to contribute. Again.

http://www.efsf.europa.eu/about/index.htm

 

EFSF is backed by guarantee commitments from the euro area Member States for a total of €780 billion and has a lending capacity of €440 billion.

EFSF has been assigned the best possible credit rating by Moody’s (Aaa) and Fitch Ratings (AAA). EFSF has been assigned a AA+ rating by Standard & Poor’s.

 

Gee, it's AAA, what could possibly go wrong?

Tue, 05/29/2012 - 17:37 | Link to Comment Tuffmug
Tuffmug's picture

So the ECB won't press the print button. No Problem. I expect Spain will announce a new method of funding the bailout of Bankia based on Keynesian Fantasy Economic  Principles. I expect them to announce the immediate opening in front of Bankia of a paella and sangria food stand with all proceeds going to the bailout. If they get to 28 billion served then problem solved. 

Tue, 05/29/2012 - 17:48 | Link to Comment shovelhead
shovelhead's picture

Better toss in a few of those 'guest worker' Croatian hookers in the vault to maximize return.

Tue, 05/29/2012 - 17:53 | Link to Comment Tuffmug
Tuffmug's picture

Croatian hookers will be unavailable as they are reserved for servicing the Bankia bankers as a bonus for their outstanding yearly performance. 

Tue, 05/29/2012 - 17:37 | Link to Comment sudzee
sudzee's picture

I think the necessary "print" to save the system is so large that no-one wants to be the CB that pulls the trigger. No bazooka this time its going to need a neutron bomb.

Tue, 05/29/2012 - 17:46 | Link to Comment Eurogroup
Eurogroup's picture

That's why we need another coordinated fiat bonanza. 

And we will all print (go down) togetherrrr. 

Tue, 05/29/2012 - 17:48 | Link to Comment Tuffmug
Tuffmug's picture

The Euroeans have never wanted to pay their own bills. Every new fantasy bailout they have trotted out has required non EU money to fund it by buying billions of crappy bonds. Socialists ALWAYS want someone else to PAY!

Tue, 05/29/2012 - 18:05 | Link to Comment jal
jal's picture

The US must be socialist. They have been getting someone else to pay for the last 30 years.

They have been spending money that they don't have.

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